Perspectives on Manufacturing Industries 2/2012

The machinery and plant engineering industry in Western Europe successfully managed the 2008/2009 crisis. Many companies saw their revenue and profitability quickly return to pre-crisis levels. But the economic environment has changed. For some time now, high forecast uncertainty and pronounced volatility have no longer been transient phenomena, but a permanent state of affairs that every company needs to adapt to.

Furthermore, there is growing uncertainty about the direction of the economy. As a result of the continuing financial market crisis and new regulations such as Basel III, the requirements for access to capital are becoming stricter – especially for companies that have poor business figures, operate in a difficult market environment or use a business design that is fraught with risk. These are the findings of Oliver Wyman’s most recent restructuring study, which is treated in greater detail in the cover story of this issue of Perspectives. The study describes what companies must do to prepare for a possible downturn and how they can secure the trust of their capital providers.

We also asked Sven H. Jezoreck of Deutsche Bank to tell us how companies and banks are challenged by the economic situation, financing and crisis management. He emphasized that if we all expect another crisis and are prepared to respond quickly and appropriately to changes, it will not take on the dimensions of the one in 2008/2009.

Perspectives on Manufacturing Industries 2/2012